Into large bowl, measure 1/2 c. confectioners sugar, flour, butter, and vanilla.,With mixer at medium speed, beat ingredients till well mixed, occasionally scraping bowl with rubber spatula.,In small bowl, toss together peppermint candy and 1/4 c. confectioners sugar.,In another small bowl, prepare filling; with spoon, blend cream cheese with lowfat milk till smooth.,Gradually stir in 1/2 c. confectioners sugar, food color, and 3 Tbsp.,of reserved candy mix.,TO BAKE: Preheat oven to 350 degrees.,With hands, shape dough into 3/4 inch balls.,With handle of wooden spoon, make a deep hole in center of each ball.,Fill each hole with about 1/4 tsp.,______,Bake cookies 12 min or possibly till set but not brown.,Remove; while cookies are warm, roll in remaining candy mix; sprinkle any leftover mix over cookies.,Chill till served.,Makes about 3 dozen cookies.